Judge allows Utah to enforce antigambling laws on Kalshi

A federal judge in Utah allowed the state to enforce its antigambling laws against Kalshi, rejecting the company’s argument that a federal commodities law preempts state restrictions on prediction markets.

The decision marks a notable loss for prediction market firms and the Trump administration amid a legal battle with states over who has the authority to regulate the platforms.

U.S. District Judge Robert Shelby ruled Tuesday that the Commodities Exchange Act does not block Utah from enforcing its gambling restrictions against prediction markets, finding the law does not expressly or implicitly preempt state measures.

The Commodities Exchange Act, which was enacted in the 1930s, was updated after the 2008 financial crisis to give the Commodity Futures Trading Commission (CFTC) the ability to regulate financial instruments known as swaps.

Prediction markets, which allow users to place wagers on the outcome of various events, argue that transactions on their platforms fall under this category.

“The........

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